The paper deals with policy issues of knowledge spillovers via foreign direct investment (FDI) to help positioning CEEC economies in global shift in production and innovation. CEEC economies successfully attracted some FDI in R&D. However, considerable misalignment between domestic and foreign technological accumulation exists. This is partly related to the heterogeneity of foreign subsidiaries but even more so to weak performance and governance of national innovation systems as well as poor coordination of FDI and policies in the field of science and technology (S&T). The paper reviews existing relevant policy areas such as linkage promotion, R&D capabilities and technological linkages, horizontal policies, training incentives, as well as industrial, technological and science parks. The paper argues that an increased policy focus on technological aspects would not only improve the potential for technological spillovers from FDI but also the absorption capability of domestic firms. A way forward is to coordinate FDI policy better with R&D, innovation, and regional policy instruments. In this case, CEEC economies can use FDI as means to realign their national innovation systems with global knowledge creation and diffusion.

From the beginning of transition in 1989/90, the CEECs switched towards an ‘open economy’ model of economic development, and the evolving patterns of trade, industrial specialization and integration into cross-border production networks through foreign direct investment (FDI) have played a crucial role in structural changes and modernisation processes of CEECs’ economies.
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However, the economic crisis and the rise of global competition from other, mainly Asian, emerging economies challenge the future sustainability of the development model adopted by CEECs. This triggers also questions about an appropriate policy mix to foster competitiveness via trade and FDI. Against this backdrop, research in this work package provides an update of the role and further potential of internationalization processes for the region’s economic cohesion and growth.

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A majority of the world’s agricultural production takes place on small farms (less
than 2 hectares). India has one of the smallest average farm sizes with over 68 per
cent of its farms being marginal in size (below 1 hectare). Small farm production is
constrained by challenges of accessing lumpy inputs of management and asset
specific machinery, markets, credit, extension services and technology. Collective
actions in the form of cooperatives in many parts of the world have played a vital role
in overcoming these challenges and enabling agricultural growth. However,
cooperatives in India have suffered from low participation, over-dependence on state
assistance, poor management, political interference in their functioning and poor
benefits to intended target groups. In recent years Producer Organisational Formats
(POFs) such as Producer Companies (PCs), Joint Liability Groups (JLGs) and
Farmers Federations (FFs) have emerged in an attempt to address some of these
challenges faced by small producers. Although policy makers recognize this new
cooperativism to have the potential to address small producer disadvantages, progress
has been little in supporting or promoting POFs in India due to limited understanding
of their functioning, impact and potential. This knowledge gap motivated this
research. Using a conceptual framework grounded in institutional and collective
action theories, this thesis examines (a) how POFs are structured on organisational,
social and economic terms and (b) how resources are allocated and incentives aligned
within these institutions. The thesis finds that the examined POFs are small, regionspecific
collective actions, organised with the help of non-governmental
organisations (NGOs) supported by the state. POFs relied on networks of social
relationships, trust, norms and sometimes religious ideology to prevent collective
action problems that hindered effective organisation. In economic terms, POFs
helped improve market access and increased marketable agricultural surplus at the
household level; yet, this surplus was not sufficient for households with marginal
sized land to solely depend on farming as a livelihood activity. As for resource
allocation and incentive alignment within POFs, the even distribution of collective
goods to all members was a strong material incentive for participation. Social capital
in the form of networks, norms and trust among members also incentivised
participation. In sum the study finds that POFs have the potential to improve access
to markets, credit, inputs and research and extension services, the lack of which has hindered small and marginal producer viability. In some cases social disadvantages of
access arising from gender and caste were addressed through these organisations.

This PhD dissertation focuses on business model innovation (BMI), which plays a central role in
explaining firm performance and is viewed as a source of competitive advantage. A recent global
survey of more than 4,000 senior executives by the Economist Intelligence Unit found that the
majority (54%) favoured BMI over product or service innovation as a source of future competitive
advantage. Hence, the research on BMI is a salient topic for strategic management and
entrepreneurship studies because it is central to a firm‘s dynamic capability for novel value creation
and novel value capture on a sustainable basis.
Prior studies have argued that a business model can be only effective if it is designed properly for
a specific context. In this sense, the business models of multinational enterprises (MNEs) should
differ from those of domestic firms. Specifically, owing to the large gaps or distances in the
economic and institutional contexts between advanced and emerging economies, as two sides of the
global divide, cross-divide entry by MNEs, either from an advanced economy into an emerging
economy as a top-down venture or from an emerging economy to an advanced economy as a
bottom-up venture, will depend heavily on the novel business model designed to match the host
context on the other side of the global divide. This is particularly true in the case of entering the
mid-end market as the mainstream in the host economy. In addition, owing to the internal
contextual dimensions of corporate size and age, the key challenge to a top-down venture seems
more acute for medium-sized MNEs (MMNEs) than both large and small MNEs (the latter is often
referred to as ‗born-global‘ firms). This is because MMNEs tend to have more limited resources
than large MNEs, but less flexibility than small MNEs. Given the salience of the cross-divide
context to MNEs as well as the paucity of research on MMNEs, this PhD dissertation focuses on
how BMI occurs in the special context of cross-divide entry with a top-down venture for a mid-end
market by MMNEs.

This paper explores the qualitative, subjective and contingent values of the Ancient
Greek concept of Kairos, and argues its utility in developing an adaptive, pragmatic,
persuasive and creative model of Strategic Leadership. A kairotic model of Leadership, we
argue, is more coherent with current and future approaches to Strategy and to its spatiotemporal
qualities.
In the following we first present the concept of Kairos and discuss its relevance to
Strategic Leadership and its challenges, we then introduce current conceptualizations of
Strategy and their implications for Strategic Leadership, and finally synthesize these insights
and the literature to gauge implications.

With the integration of post-communist countries into the European and global economy after 1990, there was strong research interest into the role of multinational enterprises (MNEs) for economic restructuring and technological catching-up. Most of the existing empirical studies on locational determinants of FDI and host country effects did not take account of East Germany. This might be for different reasons: Firstly, theoretical and empirical difficulties derive from the fact that East Germany followed a distinct transition pattern as it became a region subsumed in a larger and more mature economy. Secondly, East Germany received private investment from foreign as well as West German firms. Only the first can be considered as a foreign direct investment (FDI). Finally, there had long been a lack of micro data to adequately analyse the activities of corresponding firms from a production as well as technological perspective.

Following the noted success of the 1st international conference on postdisciplinary approaches to tourism studies (held in Neuchatel, Switzerland, 19-22 June, 2013), we are happy to welcome you to the 2nd Tourism Postdisciplinarity Conference.
Postdisciplinarity surpasses the boundaries of disciplinary thinking and opens up the possibility to question the established phenomena – touristic or otherwise – we take for granted. It does not claim that disciplinarity is essentially wrong, but it shows that disciplinary silos limit our capacity to make sense of the world and aims to make the subject of study less embedded in that system of thought. Postdisciplinarity is an epistemological endeavour that speaks of knowledge production and the ways in which the world of physical and social phenomena can be known. It is also an ontological discourse as it concerns what we call ‘tourism’. Postdisciplinarity, as we see it, is an invitation to various interpretations, critical analysis, and creative problem solving. It extends to questioning conventional norms and processes of knowledge production, as well as challenging the environments that confine the scope and limits of what is possible, relevant, desirable and even credible.

This paper critically examines the relationship between federal and local‐state level
governments in interpreting and presenting the World Heritage brand at two Malaysian
World Heritage sites, George Town and Melaka. The World Heritage status is
internationally recognised. Although the World Heritage brand offers many advantages
in tourism development and destination marketing, what and how the local heritage is
conserved, interpreted and appreciated remains open. This article shows that the
mechanisms of interpreting and presenting the WH status vary according to the
agendas and needs of authorities. This working paper also shows that material heritage
and heritage stories are highly politicized, and the World Heritage recognition has
inevitably become a tool for further ideological intentions.

This report explores patterns of technology upgrading as a three-dimensional process which consists of (i) intensity of technology upgrading, (ii) structural change, and (iii) interaction with the global economy. The specificity of our report is that we depict patterns of technology upgrading by relying entirely on patent data. We derive patent indicators to capture the three dimensions.
Patent indicators for intensity of technology upgrading trace technological capabilities at the technology frontier (transnational patents) and behind the technology frontier (domestic/resident direct applications to national offices). Structural change in technological knowledge is depicted by the share of transnational patent applications in high technology fields and knowledge-intensive activities and by calculating a technological diversification index. To capture interaction with global economy in the upgrading process indicators measure technological knowledge sourcing across countries and interactions between foreign and indigenous actors. Based on 7 patent indicators covering the three upgrading dimensions the comparative analysis focuses on EU27 and its subregions and on the BRICS countries.
According to the results, in 2011 CEECs were quite homogenous in their upgrading paths. A typical CEE economy in 2011 is well behind EU12 in terms of frontier technology intensity, domestic technology intensity, share of high tech patents and technology sourcing abroad. Moreover, its organizational capabilities are often less advanced. The CEE profile is much less coherent in terms of technology diversification/specialization and share of joint inventions. However, differences among CEECs are not significant. Still there are some notable national features. Poland, Romania and Slovenia have above average domestic technological intensity which reflects partly their sizes (Romania and Poland) and specific model of innovation system reliant on domestic R&D intensive firms (Slovenia). Latvia and Lithuania are specific in terms of high share of HTKI patents.
CEE technology upgrading as depicted by patents is within the BRIC pattern (with exception of China which in terms of technology upgrading has de facto delinked from BRICS). In the BRIC context, the CEE characterize very open innovation system with a high share of coinventions and foreign actors exploiting local inventions. This reveals weak organizational capabilities to commercialize its own inventions.
According to the results CEE grew during 1990s/2008 based on production, not technological capability. Their future growth will increasingly depend on building technological capabilities at world frontier level. Our analysis shows that the basis for such growth exists only to a limited extent and that speed of upgrading towards world frontier activities is well beyond required for catching up. Equally, our analysis shows that solutions for improved technology upgrading will need to be found with their existing innovation model of small open economies integrated into the EU.

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Joint Development Initiatives between the Private and Public Sectors in Development Cooperation

Johansson de Silva, Sara; Kokko, Ari; Norberg, Hanna(Stockholm, 2015)

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Resume:

The importance of the private sector for economic development is
undisputable. Private actors - whether we talk about firms or other
organizations - are an essential part of the web that forms a wellfunctioning
society.
However, the role of the private sector in development cooperation
is more disputed, from proponents’ claim that supporting the growth
and development of (formal) business is at the heart of what aid
should do to antagonists’ view that aid could and should be used
better than to increase profits for business.
The present report is not about private sector development in
partner countries per se. It studies the extent to which actors in the
business sector can act as partners in development cooperation to help
fulfil the objectives of aid. In the report, Sara Johansson de Silva, Ari
Kokko, and Hanna Norberg map out the extent of, and analyse the
potential development gains from, the formation of partnerships
between public and private actors in Swedish development
cooperation. Such partnerships, referred to as Joint Development
Initiatives (JDI), are expected to realize mutual gains. Potential gains
for public actors include an increase in reach and improved efficiency
in delivery; additional (private) financial resources and innovative
capacity. Potential gains for private sector actors include the
emergence of new firms and markets when prohibitive risk levels are
lowered through public involvement; market access and higher
turnover for existing firms; and more socially responsible business
practices, increasing the sustainability of firms.

We outline a strategic response capability framework drawing on cognitive neuroscience to explain stakeholder sensing and anticipations as essential input to environmental analysis. Stakeholders receive stimuli from ongoing interactions with the firm and thereby sense current environmental changes and form anticipations about future performance that provide early signals about needs for proactive strategic responses. Based on insights from literatures on cognitive neuroscience, marketing and strategy we develop a strategic response capability model driven by stakeholder sensing and anticipations with associated propositions. We discuss the implications of the proposed framework and suggest future research venues to further uncover the microfoundations of the firm’s strategic response capability.

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Organizational studies should address contemporary challenges of dealing effectively with the increasingly complex and dynamic business conditions. In this context we argue that structural features are linked to the corporate strategy process and affect the organization’s ability to respond to ongoing environmental changes. Sustainable performance arguably derives from integrative strategy-making where business opportunities are pursued as they emerge while being directed and coordinated through forward-looking analytics. This combination of decentralized responsiveness and central reasoning identifies a dynamic system of interacting fast and slow processes. The fast system observes and reacts to environmental stimuli and the slow system interprets events and reasons about future actions. When the fast and slow processes interact they form a dynamic adaptive system that allows the organization to respond to uncertain and changing conditions. We apply this model to interactions among individuals in organizations where ongoing experiential insights among dispersed operating managers interact with the forward-looking planning considerations around top-management. This identifies an organization that is able to react to frequent and often unpredictable changes and adapt.

Purpose – The article brings attention to the importance of corporate values and concrete leadership enactment of those values as a necessary condition for effective risk management outcomes.
Design/methodology/approach – The content is based on practice-based research experiences supported by relevant literatures on risk governance and values-based management complemented with insights from case analyses and empirical studies.
Findings – The paper explains why formal risk management approaches have limitations and outlines how the presence of official policies and codes of conduct is insufficient to deal with dynamic and complex high-impact situations where strong core values heeded by the corporate leadership, in contrast, leads the way to better risk behaviors throughout the organization. Major disasters in British Petroleum over the past decade illustrate how a formal code of conduct failed to do the job when the leadership in reality gave first priority to profits at the expense of the stated environmental values. The prioritized code of the US Coast Guard is used to illustrate the circumstances where core values support effective crisis, disaster and risk management outcomes.
Originality/value – The paper goes against conventional wisdom of imposing tighter rules and regulations with formal controls as a panacea to cope with major disasters and shows why simpler means of guiding core values combined with delegation of responsibility to act under unexpected conditions is important in both private and public enterprise.

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Intercultural management broadly refers to the handling of cultural differences in businesses
and organizations. Although culture develops in all social groups, such as in firms, schools
and neighbourhoods, intercultural management often refers to cultures framed within national
and ethnic settings. Language, religion, family relations, work ethics and daily living are
some aspects of culture. These cultural manifestations reflect the community’s world views,
norms and values, and shape social behaviours and practices of members in the community.
The idea of “intercultural management” also suggests that cultural differences are sources of
miscommunication and misunderstandings. So in international business, intercultural
management is a daily activity that affects different operations, including localization of
services in a foreign market, offering local hospitality to foreign tourists, adapting one’s
negotiation style to overseas business partners, communication in an international work
environment and devising appropriate human resource services in overseas subsidiaries.

In dynamic environments, competitive advantage lies in developing useful knowledge from continuous streams of unstructured and ambiguous data. Frontline employees and certain groups of customers are often the first to sense emerging issues of strate-gic importance due to their experiential insights of the firm’s daily operations. Yet, they are rarely asked to provide updated information about critical issues. The present paper seeks to conceptually develop the notion of responsive innovation, by drawing on literary streams concerning collective sensing, strategic issue diagnosis and integra-tive strategy within a micro foundations perspective. It is posited that companies should root their innovation processes in the collective sensing of frontline-employees and customers that operate around the organizational periphery. This frames the con-cept of responsive innovation, where individuals engaged in the firm’s ongoing busi-ness activities collectively identify issues that central managers can resolve.

The organizational capacity to cope with unexpected changes remains a fundamental challenge in strategy as global competition and technological innovation increase environmental uncertainty. Whereas conventional strategy-making often is conceived as a sequential linear process, we see it as a non-linear interaction between top-down and bottom-up mechanisms dealing with multiple actions taken throughout the organization over time. It is driven by intension but with a flexible balance between centralized (planned) and decentralized (spontaneous) activities where strategy formulation and implementation interact. We adopt the frame of complementary Yin-Yang elements and Zhong Yong balance to explain the time bound interaction between these opposing yet complementary strategy-making mechanisms where tradeoffs and synergies are balanced across hierarchical levels. The model outlines how the interaction between top-down and bottom-up mechanisms shape sustainable strategic responses.

The organizational capacity to cope with unexpected changes remains a fundamental challenge in strategy as global competition and technological innovation increase environmental uncertainty. Conventional strategy-making is often conceived as a sequential linear process where we see it as a non-linear interaction between top-down and bottom-up mechanisms dealing with multiple actions taken throughout the organization over time. It is driven by intension but with a flexible balance between centralized (planned) and decentralized (spontaneous) activities. We adopt the principles of complementary Yin-Yang elements and Zhong Yong balance to explain the time bound interaction between these opposing yet complementary strategy-making mechanisms where tradeoffs and synergies are balanced across hierarchical levels.

We construe a conceptual framework for responding effectively to true uncertainty in the business environment. We drill down to the essential micro-foundational capabilities - sensing and seizing of dynamic capabilities - and link them to classical strategic issue management theory with suggestions on how to operationalize these essential capabilities. By definition true uncertainty represents environmental conditions that are hard to foresee, which can catch the unprepared by surprise while presenting opportunities to the conscious organization. We demonstrate that organizations relying on aggregation of stakeholder sensing and predictions of emergent strategic issues can positively influence the two capabilities and help the firm adapt in the face of uncertainty and unpredictability. Robust measures predicating performance based on information from key stakeholders involved in the firm’s core operations provide faster, more accurate, and updated insights about environmental developments identifying important strategic issues and solutions to them. This provides corporate decision-makers with a proactive tool in the quest for timely and effective strategic responses.